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Most 401(k) plans have not included exchange-traded funds, in some cases because of fees that are higher than those associated with mutual funds. The cost of trading ETF shares is another challenge. Despite these obstacles, some plan sponsors are considering ways to add ETFs, growing in popularity with investors, to their 401(k) lineups.

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Mutual funds have historically been the core investment vehicle in 401(k) plans, but Duncan Rolph writes that exchange-traded funds, which are gaining popularity, are poised to gradually take over that dominance.

More investors are seeking access to exchange-traded funds via their 401(k) plans, according to Charles Schwab's 2014 ETF Investor Survey. However, there are thorny obstacles forcing plan sponsors to take a measured approach.

Exchange-traded funds have advantages that could mean their "time has come" for inclusion in 401(k) plans, said David Gray of Charles Schwab. ETFs have the benefits of being traded multiple times per day, often having lower fees and allowing access to asset classes that mutual funds don't, Gray said.

Exchange-traded funds are finding a new home in 529 college-savings plans and 401(k) plans. That is partly because of ETFs' relatively low cost, says Steve Coyle of State Street Global Advisors. ETFs, however, are not a large part of the 529 and 401(k) markets, experts say.

Investors who are disappointed in active investments and higher-fee funds could benefit from the addition of more exchange-traded funds to their 401(k) plans, writes Casey Smith of Wiser Wealth Management. ETFs may offer a lower-cost way to buy and hold as well as diversify into asset classes not normally covered by mutual funds, Smith writes.